📘 Introduction

The Income Tax Department has rolled out the revised ITR-1 form (SAHAJ) for Assessment Year 2025–26, and it comes with critical changes you must know before filing your returns. Whether you're a salaried employee, pensioner, or someone earning interest income, these updates affect how your income is reported and how much tax you pay. Let’s dive into the ITR-1 AY 2025–26 changes and understand what’s new.

🔍 What is ITR-1 SAHAJ?

ITR-1 is a simplified return form meant for:

Resident individuals (other than not ordinarily resident)
Total income up to ₹50 lakh
Income from: salary/pension, one house property, and other sources (interest, etc.)
Long-term capital gains under section 112A (within specified limits)

File Your ITR

🔄 Major Changes in ITR-1 Form for AY 2025–26

Here’s a breakdown of the significant updates compared to last year’s form (AY 2024–25):

Feature	AY 2024–25	AY 2025–26	What’s New
LTCG Exemption u/s 112A	₹1 lakh	₹1.25 lakh	Increased limit allows more tax-free capital gains.
Opt-Out of New Regime (115BAC)	Limited clarity	Clear Yes/No checkbox	Users can now clearly state whether they wish to opt-out of the new regime.
7th Proviso to Section 139(1)	Minimal prompts	Detailed disclosures on: – Foreign travel > ₹2L – Electricity bill > ₹1L – Other triggers	Expanded reporting requirements for high spenders not otherwise required to file.
Section 89A Reporting	Not clearly separated	Separate rows for: – Notified countries – Non-notified countries	Improved compliance for NRIs with foreign retirement income.
Bank Account Details	Basic info	Mandatory to select refund account and exclude dormant accounts	Streamlined refund process.
E-filing Utility Enhancements	Manual entry	Dropdowns for: – Salary – Deductions – House property – Other sources	Better usability and error reduction.
Section 234C Relief	Basic input	Quarterly breakup needed for dividend/foreign income	Helps calculate accurate interest relief.

ITR-1_Form Download

✅ Why These Changes Are Important

These modifications are part of a larger effort to:

Improve transparency and reduce tax evasion
Help non-residents and salaried professionals file accurate returns
Increase flexibility in regime selection under Section 115BAC
Align reporting with international retirement taxation rules (section 89A)

📂 Filing Checklist for AY 2025–26 (ITR-1)

Make sure you have:

PAN and Aadhaar linked
Bank details (excluding dormant accounts)
Form 16 and interest certificates
Details of capital gains u/s 112A
Quarterly breakdown of foreign/dividend income (if applicable)
Option declaration for 115BAC (if opting out)

📊 Quick Snapshot of New Reporting Requirements

Field	Details to Provide
Foreign Travel Expense > ₹2L?	Yes/No + Amount
Electricity Bill > ₹1L?	Yes/No + Amount
Foreign Retirement Income	Country type + amount under section 89A
Capital Gains u/s 112A	Sale value, cost of acquisition, LTCG
115BAC Regime	Choose “Yes” if opting out